Business News - 11 July 2025

Economic Overview

The South African rand has traded mostly flat against the US dollar and British pound over the past four weeks, while weakening a bit against the euro. It’s now hovering around R17.8 per US$, R24.1 per £, and R20.8 per €, roughly the same as a month ago for the dollar and pound (about R17.8 and R24.4), but up from around R20.3 to R20.8 per euro. In other words, the rand held steady vs. the dollar and sterling, but lost ground vs. the euro this past month.

This period saw ups and downs for the rand. In mid-June, global risk aversion hit emerging markets – factors like escalating Middle East tensions and US tariff threats on South African goods briefly pushed the rand weaker (near R18 per $). By early July, however, easing geopolitical fears and hopes of a US–SA trade compromise helped the rand recover. Locally, better-than-expected manufacturing data provided a boost, offsetting earlier disappointments in mining output. Meanwhile, surging prices for gold, platinum and copper improved South Africa’s terms of trade, offering support to the commodity-linked rand. On the flip side, uncertainty remains around a possible 30% US tariff on SA exports (tied to AGOA negotiations and BRICS), which has kept markets cautious.

Vodacom’s Fibre Ambitions Back on Track

Vodacom is finally on the verge of expanding its fibre network after a key regulatory hurdle was cleared this week. The Competition Commission dropped its opposition to Vodacom’s plan to buy a 30% stake in Maziv, the company that owns fibre providers Vumatel and DFA. Last year regulators had blocked this R13 billion deal over competition concerns. Now, after Vodacom and Maziv agreed to various conditions (like investing more in network roll-out and keeping broadband prices in check), authorities signaled they won’t fight the deal in court.

This U-turn means Vodacom’s bid will likely get a green light from the Competition Appeal Court later this month. If approved, Vodacom – South Africa’s biggest mobile operator – will become a major player in home fibre broadband nationwide. Vodacom’s CEO says the partnership will accelerate high-speed internet expansion, create jobs, and help lower data costs. To address past concerns, Vodacom/Maziv committed to boosting fibre coverage in underserved areas, maintaining affordable entry-level packages, and giving other internet providers fair access to the network. For consumers, this could eventually mean faster and more widespread fibre connectivity, as Vodacom joins rivals (like MTN and Openserve) in pushing internet deeper into communities.

Bottom line: after 18 months of delays, Vodacom’s fibre deal is back on track – a strategic win in its evolution from a mobile company into a broader digital service provider.

Shell Gets Green Light for Offshore Drilling

Global oil major Shell has received South Africa’s go-ahead to explore for oil and gas off the West Coast. The government granted environmental authorisation for Shell to drill up to five deep-water wells in the Orange Basin, a geological area that extends from Namibia down into South African waters. Shell plans to start exploratory drilling in ultra-deep water (around 2.5 to 3.2 km deep) off the Northern Cape coast. The company and its partners are hoping to replicate the recent huge offshore oil finds in Namibia, just across the border.

Shell says if they strike viable reserves, it could significantly enhance South Africa’s energy security and boost economic development. The country has been importing more refined fuel in recent years due to refinery closures, so a big local discovery would be a game-changer. However, environmental groups remain wary. Shell’s previous seismic surveys on the East Coast were halted by court cases over potential harm to marine life. (That long-running Wild Coast legal battle is still headed to the Constitutional Court later this year.) In the fragile West Coast marine ecosystem, activists will keep a close eye on Shell’s activities. The government, for its part, is trying to balance economic interests with conservation – and will likely impose strict conditions on the drilling. For now, Shell can begin exploration, marking a new chapter in South Africa’s search for offshore oil. If major oil or gas is found, it could transform the country’s energy landscape – but any development will need to navigate South Africa’s robust environmental and community scrutiny.

Nissan Stays Committed to South Africa

Japanese carmaker Nissan has reassured it is not giving up on its South African operations, even as it restructures globally. At a media launch in Magaliesberg, Nissan’s Africa President emphasized plans to grow in South Africa and across Africa, quelling speculation about the fate of its Rosslyn assembly plant near Pretoria. Back in May, Nissan’s new global CEO announced sweeping cost cuts – including potentially closing down some factories worldwide after years of losses. Reports surfaced that Nissan’s 59-year-old Rosslyn plant (which produces the Navara pickup) was under review for closure.

This week, Nissan executives struck an upbeat tone: they introduced a new limited-edition Navara Stealth pickup model and outlined future launches (like the Patrol SUV and two new SUVs coming in 2026). Nissan says it sees high demand in Africa’s mid-range vehicle market and is investing in new variants to meet it. When asked about the plant’s future, the Africa chief acknowledged it’s “under study” but gave no indication of an exit. He highlighted that Nissan has been expanding its lineup – including a new panel-van version of the Magnite SUV for small businesses, replacing the old NP200 half-ton bakkie. By doubling down on local launches, Nissan is signaling it intends to stay. Industry analysts note that if Nissan can drive sales growth in Africa, it strengthens the case for keeping manufacturing here. For now, Nissan South Africa’s workers and suppliers can breathe a little easier: the company appears focused on new products and market share, not retreating. It’s a cautious optimism, but an important message that South Africa remains in Nissan’s long-term road map.

McDonald’s SA Names CEO with Local Roots

Fast-food giant McDonald’s South Africa has appointed new leadership with a distinctly local touch. Max Oliva, a veteran of South Africa’s retail industry, took the helm as the new CEO of McDonald’s SA on 1 July 2025. He replaces Greg Solomon, who led the company for 15 years and oversaw its expansion to over 400 restaurants nationwide.

Oliva brings three decades of home-grown experience to the role – he spent 30 years at the Spar Group, including serving as CEO of Spar South Africa, before joining McDonald’s. By choosing a leader with such strong local roots, McDonald’s SA is signaling the importance of local insight and relationships in its strategy. The company expects Oliva’s deep understanding of the South African market and consumers to help drive its next phase of growth, from menu innovation to franchise expansion, all while maintaining the brand’s strong community presence.

Chinese E-tailer Temu Opens First SA Warehouse

Chinese online shopping platform Temu has opened its first distribution warehouse in South Africa to speed up deliveries for local shoppers. The new domestic fulfillment center means South African customers can now receive certain Temu orders in as little as one day – a huge improvement from waiting weeks for international shipping. By stocking popular products within the country and partnering with local logistics providers, Temu aims to provide faster and more reliable service, especially during busy shopping periods.

The move significantly ramps up competition in the e-commerce space. Homegrown online retailers like Takealot, as well as global entrants such as Amazon (which launched South African operations in 2024), will be under pressure to match Temu’s quick delivery times and low prices. Temu’s expansion reflects its broader strategy of cutting delivery times worldwide as it enters new markets. For South African consumers, it means more choice and potentially better deals online, while local businesses are watching closely to see how this ultra-cheap retailer’s presence unfolds in the market.

Eskom to Sell R5.7 Billion Loan Business

Eskom is shedding a non-core business as part of its turnaround efforts. The power utility has reached an agreement to sell its employee housing loan division – worth about R5.7 billion – to African Bank. This little-known unit has provided home loans to Eskom staff for years, but it falls outside Eskom’s primary mandate of electricity generation.

Offloading the loan book will allow Eskom to focus on its core operations and use the proceeds to help reduce its hefty debt load. For African Bank, taking over these home loans provides a welcome boost to its lending portfolio and customer base. The transaction still requires regulatory approvals, but if finalized, it will mark further progress in Eskom’s plan to streamline operations. Both companies stand to benefit: Eskom can concentrate on keeping the lights on, and African Bank expands its business with a large, secured loan portfolio.

Engineers Buy Out Firm and Rebrand as Atana

A major consulting firm in South Africa has transformed into a new locally-owned entity. Engineering consultancy Royal HaskoningDHV South Africa – formerly the local arm of a Dutch company – has rebranded itself as Atana after a buyout by its South African management and staff. In a deal effective earlier this year, a group of mostly South African engineers acquired 74% of the local operation, with the Dutch parent retaining 26%. This week the firm officially launched its new name, Atana, derived from a Shona word meaning “closely connected.”

The change marks more than just a rebrand – Atana is now a Level 1 B-BBEE company and proudly African-owned and managed. Executives say this independence gives them agility to respond to African market needs, while still partnering with the global Royal HaskoningDHV on technical expertise. Atana’s CEO, Anke Mastenbroek, explained that the firm is “returning to our African roots” after over a century (the company’s origins date back to 1922 in Johannesburg). The new structure should also help Atana pursue infrastructure projects across the continent on its own terms. Employees are enthusiastic: many are now co-owners, and the firm plans to foster meaningful transformation and inclusion in its ranks.

Atana will continue to work in areas like climate resilience, industrial design, data centres and aviation – but under a proudly African banner. This is a noteworthy example of a multinational’s branch spinning off into a homegrown company, aligned with South Africa’s empowerment and localization goals. For Atana’s clients, it’s business as usual (same people, same expertise), with a fresh brand and a stronger African identity.

Standard Bank Alerts Public to Tax Scams

As South Africa’s tax filing season kicks off, Standard Bank is warning customers to be on high alert for tax-related scams. July marks the start of SARS e-filing season, and cybercriminals are out in force trying to exploit taxpayers. Standard Bank reports a spike in phishing emails and SMSes impersonating either the bank or the tax authority. These fraudulent messages often claim things like “You are due a tax refund – click here” or “Urgent: Update your banking details for SARS.” Unsuspecting people who click the links can have their personal info or money stolen.

The bank urges everyone to treat any communication about tax or payments with caution. Here are a few safety tips during tax season:

• Be suspicious of emails/SMS with links: Neither SARS nor your bank will send clickable links for refunds or verification. Log in independently to eFiling or banking apps instead of using links from messages.

• Never share OTPs or passwords: Fraudsters may call pretending to assist with a refund and ask for your one-time PIN – no legitimate agent will ever do that.

• Confirm SARS correspondence on the official site: If you receive a “tax due” notification, cross-check by logging into your SARS eFiling account directly. Real SARS letters will also be in your eFiling profile.

• Beware of “tax consultants” on social media: Scammers advertise on Facebook or WhatsApp offering to help with tax returns, then disappear with your fees or personal data. Stick to reputable, registered tax practitioners if you need help.

Standard Bank notes that scam tactics are getting more sophisticated, often copying real SARS branding and timing messages when people are expecting tax news. The public should stay vigilant and report any suspicious communications to their bank or SARS. Unfortunately, once money is paid to fraudsters, it’s very hard to recover – so prevention is key. With a record number of taxpayers filing online this year, the reminder is timely: stop and think twice before clicking on any “too-good-to-be-true” tax refund notices. Staying safe during tax season can save you from a world of financial grief.

Cape Town AI Startup Attracts Google Funding

In a win for South Africa’s tech startup scene, Cerebrium, a Cape Town-founded AI infrastructure startup, has raised $8.5 million (around R160 million) in a seed funding round led by Google’s venture capital arm. Gradient Ventures, Google’s AI-focused fund, spearheaded the investment in Cerebrium, which builds cutting-edge tools for running AI models at scale. Other Silicon Valley players like Y Combinator and several US angel investors joined the round as well. It’s not often that a South African-born startup grabs the attention – and cash – of top-tier global investors at this early stage, so the deal is turning heads in the local industry.

Cerebrium’s technology helps companies deploy and manage “serverless” AI applications – essentially enabling developers to integrate heavy AI workloads (like image recognition or language models) into their software without needing their own supercomputers. The platform dynamically allocates cloud GPUs and optimizes performance so that even smaller firms can offer AI-driven features in real time. This approach clearly impressed Gradient Ventures, which looked around the world for promising AI infrastructure startups and found one in our backyard. The $8.5m infusion will allow Cerebrium to scale up its engineering team and expand its platform globally, while keeping its R&D roots in South Africa.

For South Africa’s startup ecosystem, Cerebrium’s success is a positive signal. It shows that local talent can build world-class deep-tech solutions – and that global investors are watching. Notably, one of Cerebrium’s co-founders participated in the Silicon Valley Y Combinator accelerator, reflecting a strategy of bridging SA and US networks. The hope is that some of the know-how (and financial upside) from this venture will fuel next-generation innovation on home soil. With big tech investors on board, Cerebrium is poised to help other companies embrace AI faster and cheaper. And as AI adoption surges worldwide, having a piece of that pie originate from Cape Town is something to celebrate.

Simba, Coke and Sunlight Top Brand Ranking

Which brands do South Africans put into their shopping baskets most often? A new market survey reveals that Simba, Coca-Cola, and Sunlight are among the country’s favorite consumer brands. The latest Kantar Brand Footprint report (an annual study of FMCG brands) shows these names leading in “consumer reach points” – a measure of how many households buy a brand and how frequently. Simba, the local snack brand known for its potato chips, took the #1 spot, indicating that a huge majority of families enjoyed Simba chips regularly over the past year. Coca-Cola was close behind – no surprise as the fizzy drink is ubiquitous and remains a staple purchase despite health trends. Sunlight (the Unilever brand covering dish soap and laundry detergent) ranked high as well, reflecting its enduring popularity in SA homes.

The report highlights that food and homecare staples dominate the top 10. Other brands that made the upper ranks include Koo (the tinned foods brand loved for baked beans and fruit cans), Albany (a leading bread brand), and OMO washing powder. These are brands that have built trust over decades and maintained wide distribution. Interestingly, even as new products and imported brands enter the market, South Africans tend to stick with familiar favorites for everyday goods. Brand experts say affordability, availability and heritage contribute to this loyalty. Many of the top brands regularly run promotions and tailor products to local tastes – think Simba’s unique chip flavors or Koo’s presence at every braai.

One finding was that local or locally-adapted brands hold their own against global names. For instance, Simba (owned by PepsiCo now) still carries a proudly South African identity. Also, Sunlight and OMO have been in SA for generations under Unilever, effectively becoming “local” in consumer minds. The takeaway for companies is clear: to win here, you need to be part of consumers’ daily lives. Building strong brand equity and staying relevant (in pricing and marketing) keeps shoppers choosing you again and again. For shoppers, the ranking might just spark debate – do you agree with the winners? Regardless, it’s a reminder of how powerful a brand can become when it earns a regular place in the grocery cart.

Conclusion

This week’s stories carry a common theme of adaptation and forward momentum. Whether it’s Vodacom accelerating into fibre broadband, Nissan doubling down on African markets, or engineering professionals taking charge of their firm, South African businesses are adjusting their strategies to future-proof themselves.

Amid the change, some fundamentals remain steady. Beloved brands like Coca-Cola and Simba still reign in our shopping carts, and banks like Standard Bank continue looking out for customers (warning of new scams). All told, South African companies are making moves – refining their focus, partnering up in new ways, and tapping technology – to navigate a challenging environment and seize new opportunities.

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